How the Computer Product Distribution System Works

​​After the customer orders the product from your computer reseller internet storefront, then you (the computer reseller), have to contact and order the product from the computer product distributor by phone or from the distributors’ web site.

After the customer orders the product from your computer reseller internet storefront, then you (the computer reseller), have to contact and order the product from the computer product distributor by phone or from the distributors’ web site.

The computer distributor will then ship the product directly to your customers’ location with your business name on the package.

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​The distribution process:

The distributors purchase computer products from the manufactures in mass quantities at prices below wholesale, which allows you, the reseller, to purchase products from the distributor at wholesale prices in order to sell to the public at retail.​

​The manufacturer:

The commercial process first starts with the manufactures such as Microsoft, HP, Sony, Dell, and thousands more.

The manufacture creates and builds the product in mass production.

The manufacture then sells and ships thousands of products to computer product distributors across the globe, both small and large.

Many computer product manufactures will also sell directly to small and large resellers who operate from business offices or retail storefronts. However, a reseller in this position may be required to stock inventory as well. The manufacturer may also send representatives to your location on a monthly basis to make sure that you are carrying the required amount of inventory on a monthly basis.​

For example, Sony, a major manufacturer, may sell thousands of digital cameras to Ingram Micro, the distributor. But Sony will not sell anything directly to a home-based, internet business, (on a wholesale level).

Sony will also sell a few hundred digital cameras to large and mid-sized resellers as long as those resellers keep inventory stocked continually. But at the same time, there are also small niche manufactures of computer hardware and software products who will sell products to the reseller in small quantities without requiring the reseller to stock any inventory. ​

​The computer product distributor:

Distributors however, do not require the reseller to stock any inventory in order to maintain an active reseller account. Furthermore, some distributors boast multiple warehouse locations strategically placed throughout the US, UK, and Canada where they stock and ship millions of products from thousands of manufacturers. Some major distributors have warehouse operations all over the world as well.

Since the early 90’s computer product distributors have become fulfillment houses for computer resellers and retailers as well. They do everything from taking your orders online to drop-shipping the product directly to your customers location with your company name on the box.

With multiple warehouse locations operating all over the country, shipping expenses become less expensive for the reseller. And since the major distributors ship thousands of products every day but Sunday, they have fleets of UPS and Federal Express shipping trucks stationed at all of their locations. ​

This allows resellers to receive excellent shipping rates and over night shipping services. For example, 2-day shipping can cost you $9 while you can then charge your customers $14-$18 for that same shipping service which is very reasonable for 2-day shipping.

Computer product distributors are very reliable in all aspects of operations and rarely make mistakes on shipping instructions. However, you can also order the products online from the distributors’ website to ensure accuracy of the shipping address and fulfillment of the product.

Distributors offer a wide range of products and services including training and financing. So be sure to get acquainted with and become familiar with your distributor(s) of choice.​

​The computer reseller:

And then finally, there’s you, the computer reseller. You are the one who offers and provides computer products to the end user, the consumer. The end user can not purchase products from the distributors simply because they are not resellers and do not possess a sales tax license.

Computer product distributors will only deal with resellers and dealers, but not with the public. Even small to large size businesses can not purchase products from distributors if they are not resellers for those specific products. Therefore, businesses have to turn to you, the reseller, to fulfill their computer product needs and services. That is how the distribution system works.

The computer hardware or software product goes from the computer product manufacture, to the computer product distributor, and then to you, the computer reseller.

Then you, the reseller, offers, sells and provides the products to the end user and the business sector.​